The Tax Justice Network on Tuesday accused the United States, the United Kingdom, Germany, Italy and Japan of undermining global progress in financial transparency. Even the United States is the favorite among countries that help the wealthy hide their wealth.
Activists criticized that this would help Russian oligarchs, as well as tax evaders, corrupt politicians and organized crime launder money.
The Tax Justice Network cited an EU estimate that $10 trillion is being bypassed from the rule of law by wealthy individuals through covert deals abroad. This is 2.5 times the value of all dollar and euro bills and coins in circulation around the world today.
To create their ranking, the group evaluated how easy it is to hide money from other countries given the legal status of the different nations. Then they multiplied the value of the index by the range of financial services each country provides to foreigners.
Accordingly, the global situation has improved slightly compared to the previous year – mainly due to smaller countries increasingly demanding disclosure of the true owners of assets.
In contrast, the USA, Great Britain, Germany, Japan and Italy made no progress. Even the United States has deteriorated significantly and is far ahead of Switzerland.
Some US states are notorious for facilitating the creation of anonymous shell companies and organizations with low taxes and few controls. However, during the election campaign, US President Joe Biden made the case for increasing transparency in the financial world.
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